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Samenvatting Strategic Management International Business Administration
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Samenvatting Strategic Management International Business Administration
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lOMoARcPSD|15781725Strategic Management Summary Endterm
Chapter 1 -> What is strategy
Strategic management -> combines analysis, formulation and implantation in quest for
competitive advantage (through benchmarks)
AFI strategy framework -> embodies framework
Strategy -> set of action to gain competitive advantage, compete for new recourses
- Good when position obtained -> 3 elements
o Diagnosis of competitive challenge – SWOT
o Guiding policy – through strategy formulation
o Set of coherent actions to implement policy/strategy
Sustainable competitive advantage -> over prolong period of time
- Also competitive disadvantage or competitive parity (equal)
Gain competitive advantage through -> product differentiation or cost leadership, then gain
market share and increase profitability
Strategic positioning -> find unique position in industry where provide value and control
cost
- Use reinforcing activities not trade-offs
- Need strategic profiling
Strategy is not grandiose statements, not fail to face a competitive challenge, not
operational effectiveness or competitive benchmarking
Gain competitive organization -> define
Vision – want company wants to accomplish, long-term objectives, gives purpose, be
inspiring and motivating, goal with to…
o Customer oriented – providing solutions to customer needs, adapt to
changing environment, leave open how to accomplish, needs to be
flexible
o Product oriented – defines by products/service, constrain to adapt
to environment, more myopic view on competitive landscape
Strategic intent – stretch goal with sense of winning, build necessary resources and
capabilities through continuous learning
Mission – what organization actually does, product and services it plan to provide, which
marker, preposition by (how to accomplish vision)
Strategic commitments – needed for vision/mission, actual actions (costly, LT)
Positive relationship vision statements and firm performance under 3 circumstances ->
- Vision are customer-oriented
- Internal stakeholder are invested in defining the vision
- Organizational structure as compensation align with vision
Core values statement -> principles that guide towards achieving vision (ethical), either
internal or external
Organizational core values – govern behavior of individuals within firm, these provide
stability and keep company on track
, lOMoARcPSD|15781725
AFI strategy framework ->
- Analyze Formulate and Implement tasks to manager process, often interdependent
and explained by framework
Chapter 2 -> Strategic Leadership
Strategic leadership -> use of power by executives to influence and direct activities of
others when pursuing goals, either formal (position) or informal (persuasion skills), prefer
face to face
Upper-echelons theory -> framework that views organization outcomes as reflection of
values if top mgmt. team. Leader interpret situations through lens of unique perspectives
based on personal circumstances, values and experiences. Natural and skill learned.
Level 5 leadership pyramid -> how leadership progresses through 5 stages
- Level 1 -> highly capable, contributes through motivation, talent, knowledge
and skills
- Level 2 -> become effective team player, to achieve common goals
- Level 3 -> team player to manager who organizes resources to accomplish goals
- Level 4 -> knows which choices has to be taken in any situation to pursue strategy
- Level 5 -> combines willpower and humility, help reach org and employees potential
3 separate areas to formulate strategies
- Corporate strategy -> where to compete (industry, market, geography)
- Business strategy -> how to compete (cost ls, differentiation or value innovation)
o Often in SBU’s (responsible own profitability)
- Functional strategy -> implementation of business strategies
o Functional managers within BU
Strategic management process -> method created by strategic leaders to formulate and
implement strategy that facilitates a sustainable competitive advantage
1. Strategic planning
o Top down -> analysis, formulation and implementation (structure,
culture and control) and ethics important
▪ Can predict future from past
▪ Limitations -> no integration, unforeseen events, wrong opinion
2. Scenario planning -> planning future with contingency plans, what if, starts
top down, yet also take pessimistic and optimistic in view
o Shown in AFI framework
o Step 1 -> analysis stage, consider different scenario’s
▪ Black swan events (improbable and unexpected, high impact)
o Step 2 -> Formulation stage (develop strategies to address scenario’s)
o Step 3 -> Implementation stage, execute dominant strategic plan
- Can have illusion of control in 1&2, should also include soft data (personal things)
3. Strategy as planned emergence -> top-down and bottom up
o less formal and stylized as reflects that strategy can be planned from
bottom up
, lOMoARcPSD|15781725
o Step 1 -> start top down with intended strategy, some will
dropped (unrealized strategy)
o Emergent strategy may arise – unplanned strategic initiatives from firm
o Realized strategy = emergent and intended strategy
Strategic initiatives -> activities a firm explore new products etc, can come from anywhere
in firm and environmental, can be caused by
- Autonomous actions – low-level employees in response to situations (need to fit
vision of firm) and supported by top and mid-level management (internal
champions)
- Serendipity – pleasant surprises that impact strategic initiatives (pursuing interest)
- Resource-allocation process -> allocate resources to products that are
most beneficial
Black swan event -> 2008 crisis, distrust, managers actions have impact and balance with
stakeholders
Stakeholders -> people who have interest in organization and survival of firm
- External stakeholders -> customers, creditors, government
- Internal stakeholders -> employees and stockholders
- Exchange relationship between stakeholder and firm
Stakeholder strategy -> manage stakeholders to sustain competitive advantage, improve
joint value creation, benefits of stakeholders analysis
- Satisfied stakeholders more cooperate
- Trust increase, is lower costs
- Managing web can lead to adaptability and flexibility
- Negative impacts can be reduced = stable returns
- Build strong reputation
Stakeholder impact analysis needed
- Primary stakeholders – shareholders and investors
Pay attention to three stakeholder attributes -> power, legitimate claims and urgent claim
(claims immediate response)
1. Identifying stakeholders – focus on material effects, customers, suppliers, media
2. Identify stakeholder interests – power, legitimate claims and urgent claim
3. Opportunities and threats
4. Identify social responsibilities – CSR (firms owe society something), can
happen economically, legal, ethical and philanthropic
5. Address stakeholder concerns
CSR ->
- Economic responsibility – paid, return, affordable products
- Legal responsibility – perform right actions
- Ethical responsibility – privacy, meet values, norms
- Philanthropic responsibility – Corporate citizenship (voluntarily give back to
society), through education etc.
- Ethical and Philanthropic not required
Chapter 3 ->
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